* Note: Prices are in Million (M) USD.
Description:
Aptiv plc is an auto parts company headquartered in Dublin, Ireland.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,448 M
Debt : $8,212 M
EBITDA : $2,175 M
Net Debt (Debt - Cash): $6,764 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Auto parts
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.04
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $506 M
Average Revenue: $17,187 M
Revenue Converted To Free Cash Flow (%): 2.9%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $19,713 M
Revenue 4 Years Ago (2020-12-31): $13,066 M
Last 5 Years Average Revenue Growth: 10%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $257 M
Share Count 5 Years Ago (2020-12-31): $271 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $8.31
Trailing 12-Month Earnings Per Share (EPS): $7.53
Average Earnings Per Share (EPS): $7.92
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 16 valid ROE years (max 20).Average ROE: 44.5%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $80
52-Week Low: $47
Threshold Price (15% Above 52-Week Low): $54
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $15,613 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Aptiv PLC (APTV) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
45.56 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 12 Years Avg P/E (14.83)
× EPS ($7.92) = $117.45.
Last 12 Years Avg PE 14.83, Fair Value PE 15, Industry Based PE 15, Growth Based PE 10, RCFC Based PE 12.36, ROE Based PE 45.56, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.55. Value-Trades has assined P/E value 18.55. Since an average (Current Year EPS + Next Year EPS) earning per share is $7.92.
The fair value of Aptiv PLC (APTV) stock should be (18.55 x $7.92) = $146.9.
